How to Plan for Dynamics GP End of Support: What You Need to Know
In late 2024, Microsoft announced the Dynamics GP end of support, marking a significant shift for businesses relying on the legacy ERP system.
Key dates for the end of support are approaching, and while it might be tempting to sit back and wait until closer to those deadlines, you shouldn't delay your planning. It's time to evaluate your next steps in creating a strategic plan to move forward, whether you are staying on GP or considering Microsoft Cloud options.
Understanding the Dynamics GP End of Support Announcement
Dynamics GP has been a reliable ERP solution for mid-sized businesses for over 40 years. Because of this longevity, it's understandable that businesses familiar with it are hesitant to move or are in no rush. However, as Microsoft technology innovations continue to shift toward the cloud, GP is being phased out in some respects. While this may seem daunting, it's also an opportunity to modernize your business and open you and your team up to new features and functionalities to improve efficiency.
Important Dates to Keep in Mind - What You Can Expect When Dynamics GP Support Ends
Microsoft has set a clear roadmap for the discontinuation of Dynamics GP. Here are the key dates you need to be aware of:
- December 31, 2029 – Microsoft will continue providing product patches and enhancements until the end of 2029. However, there will be no major feature updates beyond this point. (Please note this timeline was changed from the original one Microsoft gave.)
- End of 2029 – The final payroll update for U.S. and Canadian payroll users. This means businesses relying on GP for payroll processing need to find alternative solutions before 2030.
- April 30, 2031 – The last possible security patch release. There will be no more updates after this date. This is significant because businesses still running GP may be vulnerable to security threats and compliance risks.
While these dates may seem far off, implementing an ERP transition takes time, and waiting until the last minute can create unnecessary challenges.
Your Options Moving Forward
As a Dynamics GP business, you have several paths to consider. Each option has pros and cons, and the right choice depends on your business needs, IT strategy, the opinions of your team members, and long-term goals. Let's unpack those options further:
1. Staying on Dynamics GP
Sticking with Dynamics GP may be the easiest option, but it comes with significant risks. Here’s what to consider:
Pros:
- No immediate changes to business operations.
- Users and employees are already familiar with the system.
- Avoids the upfront cost of migration.
Cons:
- Without updates after 2031, security risks will increase significantly.
- Operating systems and hardware evolve, meaning GP will eventually become incompatible, leading to system failures and inefficiencies.
- Microsoft is shifting focus to Business Central, meaning GP will lack modern AI-driven tools, automation, and integrations.
While staying on GP may work as a temporary measure, it is not a viable long-term solution. Businesses that delay transitioning may face major disruptions in the future.
2. Moving GP to Azure
If you're not ready to transition fully to a new ERP system, moving GP to Microsoft Azure can be a smart interim step.
Benefits of Migrating to Azure:
- Improved Security: Hosting GP on Azure provides better protection against cyber threats than on-premise solutions.
- Scalability: Azure allows you to scale resources up or down as needed, reducing the need for expensive hardware upgrades.
- Seamless Access: Users can access GP from anywhere, improving flexibility for remote and hybrid work environments.
- Extended System Life: Moving to Azure gives you more time to evaluate long-term ERP solutions.
Potential Drawbacks:
- This method is temporary, as GP will not receive major updates beyond 2029.
- Costs associated with cloud hosting should be factored into the budget.
- Delaying migration to a modern ERP could result in technical debt.
For businesses that need more time before fully transitioning to Business Central, hosting GP in Azure offers a bridge solution that enhances security and accessibility while maintaining familiarity.
3. Transitioning to Business Central
Business Central is Microsoft’s cloud-based ERP solution and the designated successor to Dynamics GP. Migrating to Business Central offers advanced functionality, seamless integration with Microsoft 365, and AI-driven features to enhance productivity.
Why Move to Business Central?
- Scalability: Business Central is designed to grow with your business, adapting to changing needs.
- Modern Infrastructure: Fully cloud-based, eliminating the need for on-premise hardware maintenance.
- AI & Automation: Copilot AI and other automation tools help streamline workflows and improve decision-making.
- Security & Compliance: Microsoft continually updates Business Central with the latest security measures.
- Cost Efficiency: Many businesses find that moving to Business Central reduces their total cost of ownership compared to maintaining GP.
Challenges to Consider:
- Some third-party GP integrations may not have direct replacements in Business Central.
- The user interface and reporting features differ from GP, requiring a learning curve.
- Payroll solutions are not built into Business Central but can be handled through third-party providers like Greenshades or Integrity Data.
How to Successfully Migrate to Business Central
Migrating from GP to Business Central requires careful planning. Here’s how to approach the transition:
Step 1: Assess Your Current GP Environment
Before making any changes, assess your GP system. Identify which modules, integrations, and customizations are essential to your business. You will either want to migrate those to Business Central or find equivalent modules that accomplish or improve your existing processes.
Step 2: Schedule a Business Central Demo
Seeing Business Central in action will help you understand how it compares to GP and what adjustments may be needed. You can bring your list of current processes and modules to the demo and ask to see how you could complete those in Business Central.
Step 3: Develop a Migration Plan
As with any change, covering every angle and planning every step is vital. In developing a migration plan for moving off of GP, you need to consider the size of your business, your industry, and your needs tied to that industry. You also need to involve your team and gather their feedback. Working with a Microsoft Partner like Stoneridge gives you access to a team of experts who can help you assess your environment and then use the information collected to develop a plan unique to your business.
Step 4: Choose the Right Implementation Path
There are three main migration approaches:
- Basic Migration: Focuses on core financials (GL, AP, AR).
- Advanced Migration: Adds sales order processing, inventory, and purchasing.
- Custom Migration: Ideal for businesses with complex integrations and industry-specific needs.
Step 5: Training & Adoption
Involve your team early and often. Your users will be most affected by the change, so getting their feedback and keeping them up-to-date and trained on the new solution is paramount. There are five key steps in developing a strong technology adoption plan:
- Step 1 - Build out your adoption team: This step is crucial in getting every member of your team affected by the change on the same page. Some primary stakeholder groups include:
- Executive sponsors: C-suite or VP-level leaders who can influence strategic initiatives.
- Success Owners: This group includes business managers, application administrators, implementation partners, and early adopters.
- Operational Stakeholders: In this group, you'll find end-users and technical support workers who actively use the solution throughout their day-to-day processes.
- Step 2 - Define Adoption Strategy and Intent: Establish why adopting the new technology is important, what outcomes you expect, and what metrics you will use to measure project success.
- Step 3 - Assess Adoption Readiness: This includes assessing your team's readiness and analyzing your data to ensure it is ready to move.
- Step 4 - Translate Insight into Actionable Steps: After assessing readiness, you can take the insights you gained to develop an actionable plan.
- Step 5 - Sustaining Adoption Beyond Implementation: After you go live, you still need to continuously evaluate and manage your strategies' intent and the sentiments of your adoption team.
Implementing these change management steps and providing your team with precise training will create a healthy environment for a successful Business Central adoption.
Why You Should Act Before Dynamics GP End of Support
Delaying your ERP transition can lead to security vulnerabilities, outdated systems, and unexpected costs. Microsoft offers funding and promotional incentives to help GP users migrate, making now the perfect time to start planning.
Taking proactive steps today will help your business smoothly transition to a modern, secure, and scalable ERP solution without last-minute stress.
Talk to the Stoneridge Experts to Start Your Cloud Journey
Stoneridge Software's team of consultants can help you with every step of your transition from Dynamics GP. They can assist you with:
- Assessing your GP environment, data, and processes
- Identifying your preferred migration path
- Instilling change management processes
- Implementing your new solution
- Assisting you with proactive support after the migration is finished
Get in touch with us today to get started.
Co-Author: Cory Severson
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